GRI and materiality: discussions and challenges

Perera-Aldama, Luis

doi:10.1108/sampj-05-2022-0238

Cited by 7 publications

(2 citation statements)

References 27 publications

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“…Agreeing with academic insights such as those by Korca et al (2023) and Vigneau and Adams (2023), Perera-Aldama (2023) argues that materiality is a pivotal reporting topic. After providing an overview of the evolution of the GRI Framework and Guidelines/ Standards, the paper provides a discussion on the construct of materiality.…”

Section: New Insights Emerging In This Special Issue: Academic and Pr...mentioning

confidence: 99%

Key aspects of sustainability reporting quality and the future of GRI

Luque‐Vílchez

Cordazzo

Rimmel

et al. 2023

SAMPJ

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Purpose This paper aims to investigate the current state of knowledge in key reporting aspects in relation to sustainability reporting in general and to reflect on their relevance to Global Reporting Initiative (GRI) in particular. In doing so, the major gaps in that knowledge are identified, and the paper proceeds to suggest further research avenues. Design/methodology/approach The authors conduct a review of papers published in leading journals concerning sustainability reporting to analyse the progress in the literature regarding three important reporting topics: materiality, comparability and assurance. Findings The review conducted in this study shows that there is still work to be done to ensure high-quality and consistent sustainability reporting. Key takeaways from the review of the extant literature are as follows: there is ongoing debate about the nature of sustainability reporting materiality, and single versus double materiality. Clearer guidance and better contextualisation are seen as essential for comparability, and, as GRI suggests, there is an important link to materiality that needs to be considered. Finally, assurance has not been mandatory under the GRI, but the current development at EU level might lead to the GRI principles being incorporated in the primary assurance standards. Practical implications In this paper, the authors review and synthesise the previous literature on GRI reporting dealing with three key reporting aspects. Social implications The authors extract some takeaways from the literature on materiality, comparability and assurance that will all be key challenges for GRI in the future. Originality/value This paper provides an updated review of the literature on GRI reporting dealing with three key reporting aspects.

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Section: New Insights Emerging In This Special Issue: Academic and Pr...mentioning

confidence: 99%

Key aspects of sustainability reporting quality and the future of GRI

Luque‐Vílchez

Cordazzo

Rimmel

et al. 2023

SAMPJ

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“…1. Double materiality combines financially materiality, which focuses on information affecting an organisation’s economic decisions, with impact materiality, which concerns the organisation’s effects on society and the environment. Perera-Aldama (2023), Abhayawansa (2022) and Baumüller and Sopp (2022) offered comprehensive reviews of materiality principles, including double materiality, in sustainability reporting guidelines and standards. Jørgensen et al (2022) highlighted the potential for confusion caused by the parallel use of financially materiality (SASB approach) and double materiality (GRI approach) in sustainability reporting and propose solutions for resolving it.…”

Section: Notesmentioning

confidence: 99%

Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Setia,

Abhayawansa,

Joshi

et al. 2024

MEDAR

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Purpose Integrated reporting enhances the meaningfulness of non-financial information, but whether this enhancement is progressive or regressive from a sustainability perspective is unknown. This study aims to examine the influence of the Integrated Reporting (<IR>) Framework on the disclosure of financial- and impact-material sustainability-related information in integrated reports. Design/methodology/approach Using a disclosure index constructed from the Global Reporting Initiative’s G4 Guidelines and UN Sustainable Development Goals, the authors content analysed integrated reports of 40 companies from the International Integrated Reporting Council’s Pilot Programme Business Network published between 2015 and 2017. The content analysis distinguished between financial- and impact-material sustainability-related information. Findings The extent of sustainability-related disclosures in integrated reports remained more or less constant over the study period. Impact-material disclosures were more prominent than financial material ones. Impact-material disclosures mainly related to environmental aspects, while labour practices-related disclosures were predominantly financially material. The balance between financially- and impact-material sustainability-related disclosures varied based on factors such as industry environmental sensitivity and country-specific characteristics, such as the country’s legal system and development status. Research limitations/implications The paper presents a unique disclosure index to distinguish between financially- and impact-material sustainability-related disclosures. Researchers can use this disclosure index to critically examine the nature of sustainability-related disclosure in corporate reports. Practical implications This study offers an in-depth understanding of the influence of non-financial reporting frameworks, such as the <IR> Framework that uses a financial materiality perspective, on sustainability reporting. The findings reveal that the practical implementation of the <IR> Framework resulted in sustainability reporting outcomes that deviated from theoretical expectations. Exploring the materiality concept that underscores sustainability-related disclosures by companies using the <IR> Framework is useful for predicting the effects of adopting the Sustainability Disclosure Standards issued by the International Sustainability Standards Board, which also emphasises financial materiality. Social implications Despite an emphasis on financial materiality in the <IR> Framework, companies continue to offer substantial impact-material information, implying the potential for companies to balance both financial and broader societal concerns in their reporting. Originality/value While prior research has delved into the practices of regulated integrated reporting, especially in the unique context of South Africa, this study focuses on voluntary adoption, attributing observed practices to intrinsic company motivations. To the best of the authors’ knowledge, it is the first study to explicitly explore the nature of materiality in sustainability-related disclosure. The research also introduces a nuanced understanding of contextual factors influencing sustainability reporting.

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Materiality analysis in sustainability reporting: Insights from large Spanish companies

Padilla‐Garrido,

Aguado‐Correa,

Rabadán‐Martín

et al. 2024

Corp Soc Responsibility Env

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Despite the significance of materiality, its implementation has been perceived as ambiguous, opaque, and heterogeneous. This study focuses on analyzing materiality reporting among companies that utilize GRI and are listed on the Spanish stock exchange between 2018 and 2021. First, it examines the disclosure of materiality analysis by introducing a materiality disclosure assessment index (MDA) and exploring its determinants. Additionally, it investigates the alignment of material topics with GRI Topic Standards, analyzing the cross‐cutting nature of material topics. Our results indicate that MDA reached slightly over half of its maximum value. We found evidence that MDA is positively associated with membership in the IBEX 35, as well as with five out of the seven industries comprising the stock index. Furthermore, the years of disclosure experience in two industries significantly influenced MDA. Companies considered 20% of material topics as cross‐cutting, while another 20% had no direct correspondence with GRI standards. This study builds upon previous empirical findings on GRI materiality disclosure and provides valuable insights for research, practice, and standard setting.

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GRI and materiality: discussions and challenges

Cited by 7 publications

References 27 publications

Key aspects of sustainability reporting quality and the future of GRI

Key aspects of sustainability reporting quality and the future of GRI

Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Materiality analysis in sustainability reporting: Insights from large Spanish companies

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